Ottawa,Inc.provides the following data:

For the year ending December 31,2019:

Calculate the days' sales in inventory for 2019.(Use 365 days for any calculations.Round any intermediate calculations and your final answer to two decimal places. )

Question

Ottawa,Inc.provides the following data:

For the year ending December 31,2019:

Calculate the days' sales in inventory for 2019.(Use 365 days for any calculations.Round any intermediate calculations and your final answer to two decimal places. )

Quizplus · Accepted Answer

D)
Inventory turnover ratio = Cost of Goods Sold / Average Merchandise Inventory =
$170,000 / [(55,000 + 25,000)/ 2] = $170,000 / $40,000 = 4.25 times
Days' sales in inventory = 365 / Inventory turnover ratio = 365 / 4.25 = 85.88

Ottawa,Inc.provides the Following Data